Guide · Calgary new builds

New Build Deposit Protection in Alberta: What Buyers Need to Know

Your deposit on a new home purchase is one of the largest sums of money you will ever transfer to a third party. Alberta law provides specific protections — but they have limits and conditions buyers need to understand before signing.

9 min readPublished February 18, 2026 · Reviewed By REP YYCPRPTY Network

Your Deposit Has Legal Protection — But It Is Not Unconditional

Alberta's new home warranty program provides deposit protection for buyers of new homes. However, that protection applies specifically to licensed builders and has coverage limits, eligibility conditions, and a claim process. Understanding how it works before you write that first cheque is essential.

How New Build Deposits Work in Alberta

When you purchase a new home from a builder in Alberta, you typically pay a series of deposit installments over the construction period. The structure varies by builder, but a common pattern in Calgary looks like this:

Typical Calgary New Build Deposit Structure

At contract signing$5,000–$15,000Secures the lot and locks in pricing
7–30 days after signingTo bring total to 5–10% of purchase priceDue diligence and financing window typically expires here
At design center appointmentAdditional installments may applySome builders collect upgrade deposits separately
At possessionBalance (mortgage proceeds + remaining funds)The final settlement; not a "deposit" at this point

Deposits Are Non-Refundable After the Rescission Period

Alberta provides a 10-day rescission period on new home purchases. Within 10 calendar days of signing, you can cancel for any reason and receive a full refund of all deposits paid. After this period, your deposit is generally non-refundable if you choose not to proceed — unless your contract has specific conditions that allow withdrawal.

The Alberta New Home Warranty Program (ANHW) Deposit Protection

Alberta's mandatory new home warranty program — administered through the New Home Buyer Protection Act — includes deposit protection as part of its coverage requirements. Every builder who sells a new home in Alberta must be licensed under this program and must provide deposit protection for their buyers.

What Is Covered

Builder Insolvency

If your builder becomes insolvent or bankrupt and cannot complete your home or refund your deposit, the deposit protection covers your deposits up to the coverage limit.

Builder Abandonment

If the builder abandons the project or stops construction without a legitimate reason, deposit protection may apply.

Builder Failure to Complete

If the builder fails to complete the home within the agreed extended completion dates without valid justification, deposit protection may be available.

What Is Not Covered

Buyer Change of Mind

If you decide not to proceed with the purchase after the rescission period, deposit protection does not apply. This is a contractual dispute, not an ANHW claim.

Disputes Over Deficiencies or Quality

If you refuse to take possession because you are unhappy with the build quality, deposit protection does not apply automatically. Deficiency disputes are handled through the warranty process.

Unlicensed Builders

If a builder is not licensed under the New Home Buyer Protection Act, the mandatory protections do not apply. Always confirm your builder is licensed before signing.

Renovations and Additions

Deposit protection under ANHW covers new homes. Renovation contracts or additions to existing homes are not covered.

Coverage Limits

Deposit protection under Alberta's program has a coverage limit. As of 2026, the deposit protection limit is $40,000 per home. If your total deposits exceed $40,000 and the builder fails, the protection covers only up to that limit.

Confirm Current Coverage Limits

Coverage limits are set by regulation and can change. Always verify the current deposit protection limit at the Alberta New Home Warranty Program or ANHWP website. For homes where deposits may exceed the standard limit, discuss additional protection options with your lawyer or REALTOR®.

How to Verify Your Builder Is Licensed

Before signing any purchase agreement, verify that your builder holds a current licence under the New Home Buyer Protection Act. This is the foundational requirement for all mandatory protections to apply.

1Visit the ANHWP (Alberta New Home Warranty Program) website and use the builder search tool
2Look for the builder's licence number — it should also appear in the purchase agreement
3Confirm the licence is current and in good standing, not expired or suspended
4Ask your REALTOR® to confirm the builder's licensing status before you sign anything

The 10-Day Rescission Period: Use It Wisely

Alberta's New Home Buyer Protection Act grants buyers a 10-calendar-day rescission period after signing a purchase agreement. This is one of the most valuable buyer protections in the province and one that many buyers underuse.

What You Can Do in 10 Days

  • Have a lawyer review the purchase agreement
  • Review disclosure documents from the builder
  • Confirm your financing approval and deposit capacity
  • Research the builder's licence, reviews, and history
  • Get answers to any questions about the contract, specs, or community
  • Walk away for any reason — no penalty, full deposit refund

What Happens After 10 Days

  • You cannot cancel without cause and expect a deposit refund
  • Any conditions in the contract (financing, inspection) become your only exit options
  • The builder can enforce the contract and pursue damages for non-performance
  • You may be liable to the builder for remarketing costs and price differences if they re-sell at a lower price

Do Not Rush the Rescission Period

Builder sales teams often create urgency at signing — "this lot won't be available tomorrow." The rescission period exists precisely so that buyers have time to think and review. Use every one of those 10 days constructively. Have a lawyer review the contract within the first 2–3 days so you have time to ask questions and get answers.

Making a Deposit Protection Claim

If your builder becomes insolvent, abandons the project, or otherwise triggers a deposit protection event, here is the general process:

1

Document everything immediately

Gather all signed contracts, addenda, receipts for every deposit payment, all written communication with the builder, and any notices you have received. The more documentation you have, the stronger your claim.

2

Contact ANHWP directly

The Alberta New Home Warranty Program administers deposit protection claims. Contact them as soon as possible. They will guide you through the claim process and required documentation.

3

Contact your REALTOR® and lawyer

Your REALTOR® and real estate lawyer can advocate on your behalf and help you understand your legal rights alongside the warranty claim. Some situations involve both a warranty claim and legal remedies.

4

Do not accept any settlement without legal advice

If the builder or a trustee in bankruptcy offers you a settlement, do not accept it without first consulting your lawyer. You may have rights to full recovery, and accepting a partial settlement may waive other claims.

Frequently Asked Questions

Is my deposit protected if I change my mind after the 10-day rescission period?+
No. The 10-day rescission period is your window to cancel for any reason and receive a full refund. After that period, if you choose not to proceed, the builder can retain your deposit. Deposit protection is designed to protect you from builder failure — not from buyer-side cancellations.
What if I paid more than the maximum protected amount as a deposit?+
Deposit protection covers up to the regulated limit (currently $40,000). Amounts above this limit are not protected by the mandatory program. Discuss this risk with your lawyer before making deposits above the protection limit. Some buyers negotiate to structure deposit payments to minimize unprotected exposure.
What if my builder is not licensed — can I still get my deposit back?+
If your builder is not licensed under the New Home Buyer Protection Act, mandatory deposit protection does not apply. You would need to pursue recovery through civil litigation. This is one of the reasons why confirming builder licensing before signing is critical.
How long does a deposit protection claim take?+
Claims involving builder insolvency can take months, especially if there are bankruptcy proceedings running in parallel. ANHWP aims to process claims as efficiently as possible, but complex situations with multiple creditors take time. Document everything and retain a lawyer.
Does deposit protection apply to infill builds?+
Generally yes — if the infill builder is licensed under the New Home Buyer Protection Act and the property is a new home. Confirm the builder's licence status for any purchase, including infill.

Have Questions Before You Sign?

We can review your purchase agreement, explain the deposit structure, and help you understand your protections before you commit — at no cost to you as a buyer.

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Related Guides

Source note

Sources
Jurisdiction
Alberta, Canada (Calgary and surrounding municipalities)
Applies to
New construction homes purchased from a builder in Calgary and the surrounding Alberta municipalities.
Last reviewed
2026-09-03
Limitations
General information written for Alberta buyers. It does not describe any specific builder's contract, any specific lot, or your financial situation.
What you should verify
The exact wording of your purchase agreement, the builder's current incentive sheet, warranty enrolment for the specific home, and any figure you intend to rely on.

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